Power Exchange India Limited (PXIL) has introduced the any-day single sided reverse auction contract.
This contract enables buyers to procure power through a reverse auction process to meet their power requirement for period up to 90 days ahead. In this contract, a buyer can initiate a reverse auction event by prescribing requirements in terms of quantum (in MW), minimum quantum from any seller (in MW), delivery duration (T+2 to T+90) and date of reverse auction event. The reverse auction happens in two stages, i.e., initial price offering (IPO) and reverse auction (RA). Interested sellers can submit their offers specifying quantum (in MW) and price (in Rs per MWh) in the IPO stage. Later in the reverse auction stage, the qualified sellers may improve their offers within defined period of two-hour session. On completion of reverse auction, the offers would be ranked from lowest-to-highest price till the buyer’s requisitioned quantum is fulfilled. Buyer then has a right to accept or reject the ranked offers. On receipt of acceptance from the buyer, the exchange will submit application for scheduling delivery of power. The contract enables participants to transact in conventional power and in different types of renewable energy i.e., solar, wind, hydro, and other renewable sources enabling buyers to meet their renewable purchase obligations as well.